CSD suffering from loss-making vessel trio

Shanghai: China Shipping Development (CSD) announced that it expects a total loss of RMB350m for the chartering contracts of two VLCCs “Xin Yi Yang” and “Xin Cheng Yang” and one bulker “Edward” in 2013.

CSD has chartered the two VLCCs from Dr. Peters Group for 16 years starting from 2011 for the use of transporting oil between the Middle East and China. CSD has been negotiating with the shipowner to acquire the two vessels in order to lower operating cost, however, the companies has yet to reach an agreement.

The bulker is on the 10-year chartering contract with Neu Seeschiffahrt, CSD said the vessel has been suffering from losses since 2011. The company has leased the vessel to SwissMarine Services in July 2013 till the end of the charting period to lower losses. [07/02/14]